New Delhi, February 10, 2017
With the current financial year inching towards closure, CBDT has directed the taxman to step up survey operations to check non-deduction of TDS by firms and employers, especially in cases where such payments have dropped by more than 15 per cent as compared to last time.
The Central Board of Direct Taxes (CBDT) recently reviewed Tax Deducted at Source (TDS) collections and found that the Income-Tax department had netted Rs.2.85 lakh crore revenue till January 31, at a growth rate of 14.79 per cent over the corresponding period of last fiscal. The set target in this regard is Rs.3.50 lakh crore.
The overall direct tax collection for the current 2016-17 fiscal, that ends on March 31, is over Rs.8.47 lakh crore, of which TDS collections constitute a major chunk.
CBDT Chairman Sushil Chandra, in a recent communication to all his regional I—T chiefs across the country, has underlined the need to conduct an increased number of survey operations (where the taxman visits business premises of an assessee) and on—spot verifications with regard to TDS deductions.
“There are expectations for the TDS collections to significantly exceed the target so as to compensate for sluggish growth in advance tax and regular assessment tax.
“In view of this, there is a need to step up efforts for enhancing TDS collections. More TDS surveys are required to be conducted to check large scale non-deduction or under-deduction of tax at source as well as more importantly, non-deposit of tax already deducted,” Chandra wrote.
[The Hindu Business Line]